Why Employers Predict a 10% Increase in Healthcare Costs for 2026 - MedCity News
Briefly

Employers in the U.S. anticipate a 10% increase in healthcare costs for 2026, a rise from 8% projected for 2025. Major factors driving this increase include catastrophic claims (31%), expensive prescription drugs (23%), and utilization related to chronic conditions (15%). Notably, GLP-1 drugs are cited by 59% of respondents as a significant reason for higher costs, down from 75% last year. To address these costs, 27% of employers plan to implement cost-sharing initiatives in 2026. Other strategies include plan design initiatives from 17% of respondents.
Employers in the U.S. are projecting a median increase of 10% in healthcare costs for 2026, according to a new survey by the International Foundation of Employee Benefit Plans.
Primary factors contributing to the increase in medical plan costs for 2026 include catastrophic claims (31%), specialty drugs (23%), and chronic condition utilization (15%).
To combat rising costs in 2026, 27% of employers plan to implement cost-sharing initiatives, an increase from 21% last year.
59% of respondents identified GLP-1 drugs as a major factor in rising specialty drug costs, a decrease from 75% the previous year.
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